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Gift Card Program

MAKE MONEY FROM DAY ONE.

Forget about the high cost of launching a first-rate Stored Value Card program. Now you use our startup package to begin generating income immediately with your own Gift or Loyalty cards.

You'll receive 100 Gift or Loyalty Cards personalized with your business name, display materials, and complete account setup including live phone training.

 

WHEN WOULD YOU LIKE TO SELL YOUR FIRST GIFT CARD? HOW ABOUT NEXT WEEK?

Within 3 days of receiving your order, we will imprint and encode your cards, set up your account to process gift card transactions and ship your Jumpstart package to you. Which means that about a week from now, you'll be able to put out your card display, sit back, and watch the program pay for itself every month of the year-not just during the holiday season.

With MSIQ Gift Cards, the program truly is self funding. At an average value of $35 per card, the profit from your 100 cards will easily pay for another 1,000 cards. Which in turn will generate sales of $30,000 or more. All for one low monthly fee that covers transaction processing,* 24/7 access to program activity reports, and toll-free customer service.

So, if you needed an overwhelming reason to get going with a high-profit Gift Card program or a business-building Loyalty card program, this is it.

 

 

LOYALTY CARD PROGRAMS

Retain customers and increase shopping frequency with Loyalty cards.

HOW STICKY IS YOUR BUSINESS?

In today's competitive retail environment, the battle to retain customers is fierce. The winners are those who establish and maintain one or more competitive advantages in the minds of their customers. A loyalty program can be a powerful means of creating a compelling reason for consumers to prefer one business over another. With a Loyalty Card in her wallet, a customer is much more likely to choose that merchant the next time she makes a purchase.

 

POINTS FOR PURCHASES

The first step in creating a Loyalty Program is to decide what point value to assign to customer purchases. Our recommendation is that you keep it simple and award one point for every dollar a customer spends.

 

AWARD LEVELS & REDEMPTIONS

The next step is to decide what reward(s) to give your customers when a specific point level is reached. Rewards can be products, services, discounts, or spendable value added to the card. The system can accomodate up to 6 (six) Award Levels.

Each time an Award Level is reached, the terminal printer will print a message advising the merchant and cardholder that the cardholder is eligible to redeem an award at that time.

The cardholder has the option to not redeem an award and continue accumulating points in the program. Awards are given by the merchant according to their specific program rules.

 

THE LOYALTY RECEIPT

The terminal prints a receipt which tracks the points added to the customer's Loyalty account and provides a total for all points accumulated to date and available for redemption (point balance). To eliminate confusion, no previous redemptions are shown.

 

TERMINAL APPLICATIONS

All of the terminals and applications that process Stored Value / Gift Card transactions can also be set up to process transactions for the Loyalty Program.

 

REPORTS

The system will provide reports indicating loyalty points earned through purchases, a summary of redemptions, transactions voided, balance inquiries and other activity relative to that merchant's program.

 

DATA MINING

Through MSIQ's web-based Virtual Terminal application, customer demographic information can be tied to a specific card number and stored in our host database. This database can be used to target marketing campaigns to specific customers based on a variety of card usage criteria.

MSIQ has a simple popup web form that can easily be added to a merchant website to allow cardholders to "register" cards themselves by entering their personal identification information.

 

 

RETURN ON INVESTMENT

Below is an example of an average Return On Investment based on sales of 500 gift cards.

 

*Figures are for example only and are based on average retail gross margins & sales. **Breakage = cards never redeemed. **Based on 3.5 transactions per card. Monthly System Access fee is included in Flat Fee program.

 

 

MERCHANDISING TOOLS

 

POSTERS

poster An essential point-of-purchase item. Placed in acrylic holders near the cash register or on high-visibility countertops, posters act as silent salespeople that work tirelessly, every day, all year long.

CARD HOLDERS

holders Two options designed to promote a points-based or dollar-value-based loyalty card program. Lower tear-off portion may be used to capture customer demographic data.

ACRYLIC DISPLAYS

display Single Pocket Carrier Holder shown with Standard Gift Card signage and Single Pocket Card Holder shown with Standard Loyalty Card Holder.

CARD CARRIERS

carrier Enhance the value of a Gift Card by displaying it inside a greeting-card style carrier which is opened by the recipient. Six Standard carriers are available. Each Carrier provides space inside for writing the gift receiver's name and brief message and has die cuts for attaching the Gift Card. Custom card carriers can be created as well.

TABLE TENTS

tent Table tents are available for both Gift and Loyalty card promotion in two styles:

  1. Printed sheet that fits in acrylic holder
  2. Free-standing fold-up on heavy paper stock

Custom table tents can also be created as pictured to the left.

DISPLAY RACKS

display rack The heart of any point of purchase merchandising system, these inexpensive yet attractive countertop display racks turn your gift cards into an impulse-buy item to maximize sales.

BUTTONS

button Every day, every server or associate should wear their Gift Card or Reward Card button to promote your card programs to your customers.

CHANGE MATS

mat Make an impression every time you make change. Black border, padded rubber backing, with a heavy-duty, scratch-resistant vinyl cover. Die cut slot allows you to easily and invisibly insert new promotional sheets for special holidays and gift seasons. Standard insert sheet includes placement of merchant's card image

 

MARKET RESULTS

Feedback From The Front

 

EXAMPLE BUSINESSES HERE-----------------------------------------------------------------

 

 

SYSTEM FEATURES

Valutec's data processing system is customizable and scalable as client needs change-from one to hundreds of merchant locations.
  • State of the art electronic processing at Point of Sale (POS).
  • The POS card terminal provides communication with the Valutec Data Center for accessing database information, recording transactions, and loading or unloading card balances. The terminal can also display messages from the Data Center in response to certain requests.
  • Cards easily activated, redeemed and reloaded at POS.
  • Valutec's in-house Data Center delivers reliable data processing, information storage and retrieval.
  • Daily Batch report produces a chronological list of all transactions.
  • Monthly Corporate Summary statement reports all transactions by location captured on Valutec's database during that time period, as well as total fees billed.
  • Password protected access to reports are available 24/7 on the web and can also be supplied by email or facsimile.
  • Customer support provided toll free, 24 hours a day, 7 days a week.

 

 

STORED VALUE CARD SYSTEM

How Stored Value Works

Gift Card Sales

Merchants use in-store displays to merchandise Gift Cards much like they would any small impulse-buy product-by the register with counter signs and colorful card hangers. A customer purchases a Gift Card with cash, check or credit card for any dollar amount desired. The amount purchased is recorded as "stored value" or "prepaid" in the host database.

 

Redemptions

The Cardholder presents the gift card for full or partial payment of a purchase. The merchant swipes the card through their POS terminal for authorization and transmission of transaction data on the host platform. The card's magnetic stripe identifies the card number and merchant location for which the card has been issued.

 

Loyalty Cards

Several points-based loyalty card programs can be implemented using stored value technology. One of the simplest and most powerful applications is what we call Auto Rewards. Under this program, the system automatically adds a specified Reward Value to your customer's card when that customer has accumulated a designated number of points. ...For example: when 50 points are accumulated, $10 of spendable value is loaded on the card and the 50 points are removed. This cycle simply repeats, continually motivating the customer to return to earn more points and more reward dollars. It's also easy for the customer to understand and for sales associates to administer.

 

Reload Incentives

The cardholder can purchase additional value or "reload" the card for any amount-by phone. The merchant can offer an incentive to customers to encourage card reloading. For example: increase the customer's stored-value amount by 20% (i.e., a $50 reload is recorded as $60 in stored value for the cardholder).

 

Data Processing

The stored value card system operates in real time as a closed loop debit network. Transactions, such as card activation, sales, voids and balance inquiries from the point of sale, are transmitted to the Data Center. The transaction request is fulfilled or authorized, data is captured in the merchant / client database and an approval or requested information is transmitted via the POS terminal. The POS printer produces a paper receipt of each transaction - including the card balance - for the merchant and the customer.

 

Reporting

A monthly summary report of all transaction activity is provided via mail, email or fax. In addition, a variety of program management reports are available 24/7 via the Valutec website. You can generate Transaction Detail reports that list every transaction for specified periods of time, or a Pooling report that reconciles the imbalances created when cards are purchased at one merchant location and redeemed at another in a multi-store, multi-owner environment such as a franchise company.

 

 

WHY PLASTIC VS PAPER?

  • Increases prepaid gift sales
  • Builds brand awareness
  • Keeps full cash value in store
  • Customers spend more
  • Boosts Loyalty Program usage
  • Easy to carry and use
  • Powerful promotional tool
  • Complete transaction reporting automates record-keeping

Why have cards become so popular with consumers?

  • Cards have more perceived value than paper certificates or coupons
  • Gift Cards provide a personal gift without the giver having to select a specific item
  • A Card is a convenient way to participate in a loyalty program to receive rewards, discounts and incentives
  • Identifies the Cardholder as a valued customer
  • Easy to buy, easy to carry, easy to use, and easy to give

 

MARKET FACTS

  • The average value for gift cards is $50-up from $44 in the previous year
  • Nearly 90% of the top 200 national retailers have switched to gift cards
  • Most gift card recipients make more than one trip to the store to use up the value of their card
  • 61% of customers spend more than the original value placed on the card

One out of every two in-store purchases is made with an electronic payment instrument.*

Gift Cards outsold paper gift certificates $45 billion vs $6 billion last year.**

* American Bankers Association
**The Nilson Report

 

 

REPORTING

Keeping track of Sales & Transactions

MSIQ Gift Cards generates a Monthly Merchant Summary statement which reports all transactions captured on MSIQ Gift Cards database during that time period as well as total fees billed. This report aggregates transactions at the corporate level and also provides detail for each location. Delivery methods include electronic transfer, facsimile or hard copy. The Daily Batch report produces a chronological list of all transactions, a total count and total dollar amounts by transaction type occurring since the terminal was last cleared.

 

Industry Perspective

The Stage Has Been Set

"A lot of our customers end up with gift cards when they're unsure about what to buy, but they know the person they're buying for loves our store." —Tina Baldock, Kirklands

 

Nilson Report

Gift card systems are the fastest growing consumer payment system in the U.S. over the last three years... Retailers have much to gain from the migration from paper certificates to plastic cards...gift cards will dominate the prepaid payment system for years to come.

 

Retail Card Forum

Shoppers using prepaid gift cards and certificates are less concerned about paying full price in retail stores than shoppers using other media, according to research by Daniel R. Horne, assistant professor of marketing at Providence College, RI. Horne's survey of gift card and certificate users found that 40% of shoppers using a retailer's gift card or certificate purchased items at full price, compared to 16% of shoppers using other payment methods.

 

Los Angeles Times

Macy's, Gap, Bloomingdale's and others are promoting prepaid gift cards that take the place of paper gift certificates, hoping to boost sales... The cards have an important advantage for retailers over paper gift certificates. Consumers using gift certificates receive their change in cash, which can be spent elsewhere. The electronic gift cards keep the money from leaving the store.

Dan Horne, retailing professor at Providence College in Rhode Island, said sales of gift cards and certificates have been growing 11% to 15% annually since 1993, thanks in large part to gift cards. Americans will spend billions on them, he said. The cards appeal to time-pinched consumers in search of a convenient gift, Horne said. Also, corporations purchase batches of the cards to give to customers.

Retailers view the cards, which usually have the store logo on them and easily slip into a consumers' wallet, as a form of branding."A reusable gift card can be a constant reminder of a store and its brands," said Joe Enos, a spokesman for Old Navy.

Neiman Marcus is credited with creating the electronic gift card in 1994. The retailer - known for its expensive, not to say extravagant, merchandise - has actually sold cards with values in the $100,000 range, said Billy Payton, vice president of marketing at the Dallas-based chain. "We launched the prepaid gift card because we believe it can be fun to buy, fun to give and fun to use," Payton said.

 

The Associated Press

Retailers have high hopes for the future of electronic gift cards. Finding that perfect gift for someone - at Christmas or any other time is never easy, but a growing number of retailer's think they have the solution...It's plastic.

Stores are converting gift certificates from documents to electronic cards. They're less cumbersome to carry, have a technological edge that appeals to kids and are advantageous for retailers.

 

Card Marketing

Neiman-Marcus and Barneys New York are wrapping up higher gift sales after replacing paper gift certificates with magnetic stripe, prepaid cards in all stores. Customer response has been so strong; the upscale stores are now jockeying to develop the most colorful and unique cards for every occasion, before mainstream department stores jump on the bandwagon.

 

Although the trend began at two of the nation's most upscale stores, retailers from Bloomingdale's to Target are offering prepaid gift cards, because of the convenience and cost savings the cards offer.

 

ATM & Debit News

Consumers reported receiving 4.3 gift cards last year, with an average face value of $35. Consumers who gave gift cards stated that they spend an average of nearly $143 on the plastic annually. The average amount consumers spend above the value of the card is $24.

 

Also significant to retailers is that they enjoy the "float" on unspent funds while consumers keep their cards in their wallets.

 

 

CARD PRODUCTION Q & A

What is the standard gift card size?

Standard (CR 80) gift card size is 3 3/8" width x 2 1/8" (height) x 0.30 mil (thickness) The card's dimensions are the same as a standard credit card. See Graphics Specs sheet for details.

 

In creating my card design, what dimensions do I have to work with?

Finished card size: 3 3/8" (3.375) x 2 1/8" (2.125). Magnetic Stripe is placed 3/16" from edge of card. Artwork that bleeds must extend 1/16th" beyond the edge of card. A 1/8" trim safety margin inside of card edge is recommended for all type and essential art elements.

 

What types of electronic format do you accept for artwork?

We currently accept digital files for both the Mac and PC platforms created with any of the following programs:

  • Quark XPress 4.0 to 6.0
  • Adobe InDesign 2 to CS
  • Adobe Photoshop CS or lower
  • Adobe Illustrator CS or lower
  • Macromedia Freehand MX or lower
  • Adobe Pagemaker 7 or lower
  • Corel Draw 7.0 (Win) & 6.0 (Mac)

 

Do you accept camera ready artwork?

Yes, we accept separated film and camera ready artwork. Photocopies and pre-printed materials (business cards, brochures, etc.) are less suitable for high-quality graphic production, but are often used. Complete card design services are available for a moderate fee.

 

What media can be used to send files?

We can accept your files via floppy disk, 100 & 250 MB Zip disks, (both IBM and Mac), CD, and email attachment depending on the file size.

 

How long does it take to develop a gift card proof?

Once acceptable artwork has been received, an electronic proof will be created and sent via email within 3 to 5 business days. A color laser proof can also be sent upon request. Color Key or Matchprint proofs supplied at additional cost.

 

What is the time frame for receiving my completed gift card order?

After the proof has been approved and signed, custom card production requires approximately 15 business days + shipping time.

 

What is the minimum number of gift cards I can order?

An initial order of 100 Standard cards for the Jumpstart program, 500 Standard or Custom cards for the Launchbox program or 1,000 Custom cards for the Choice program is required. Card orders may be Gift or Loyalty programs. These minimum order quantities apply to each version of a card being printed (example: 1,000 custom gift cards and 1,000 loyalty cards).

 

Can I order a larger quantity of cards in order to get a price break and have them stored until needed?

Yes. We can provide warehousing and fulfillment services for cards and custom merchandising materials. Cost depends upon volume.

 

What type of magnetic stripe is applied to the cards?

We use a LoCo. 300 oersted, 7/16" or 5/16".

 

Forget about the high cost of launching a first-rate Stored Value Card program. Now you use our startup package to begin generating income immediately with your own Gift or Loyalty cards.

You'll receive 100 Gift or Loyalty Cards personalized with your business name, display materials, and complete account setup including live phone training.

Call 800-536-1498

 
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